Mon, 06 Feb 2023

The asset availability calculation calculates the probability that an asset will be available when needed. An asset availability calculation is a mathematical formula used to determine the percentage of time an investment is operational and available for use. The asset availability calculation can be used for any asset, including equipment, vehicles, tools, and facilities.

To calculate asset availability, you first need to determine the total operational time for the asset. This is the sum of the time the purchase is in use and the time it is in standby mode. However, you then divide the operational time by the asset's total time in service and multiply by 100 to get a percentage.

Asset availability is an important metric to track because it can help you improve utilization and reduce downtime. By knowing the asset availability percentage, you can identify opportunities to make changes that will increase the time the asset is available.

What Is An Asset Availability Calculation?

The asset availability calculation is the ratio of the actual uptime of a system to the total possible uptime of that system.

An asset availability calculation is a mathematical formula used to determine the probability that an asset will be operational and available when needed. However, the asset availability calculation considers the reliability of the purchase and the maintenance schedule. And also, the expected downtime of the asset.

For example, consider a manufacturing plant that has two identical machines. Machine A has a reliability of 80% and an expected downtime of 10 hours per year. Machine B has a reliability of 90% and a scheduled downtime of 5 hours per year. The asset availability of each machine is as follows:

Asset Availability (Machine A) = 80% x (8760 hours - 10 hours) / 8760 hours

Asset Availability (Machine B) = 90% x (8760 hours - 5 hours) / 8760 hours

The asset availability calculation can be used to compare different assets' reliability. And determine the best maintenance schedule for a purchase.

What Factors Are Considered When Calculating Asset Availability?

When calculating asset availability, the factors considered are downtime, repair, and preventive maintenance time. All of which are data points that should be easily available in your CMMS.

When it comes to calculating asset availability, several different factors come into play. Here's a look at some of the most important ones:

  • Uptime:
  • One of the most critical factors in asset availability is uptime. This is the percentage of time that a system or piece of equipment is operational. To maximize asset availability, you must ensure that your plans have high uptime.

  • Maintenance:
  • Another critical factor is maintenance. Regular maintenance can help to prevent problems and keep systems running smoothly. This, in turn, can help to improve asset availability.

  • Reliability:
  • Another critical factor is reliability. This refers to the ability of a system to perform its intended function without failure. To maximize asset availability, you must ensure that your systems are reliable.

  • Scalability:
  • Another critical factor is scalability. This refers to the ability of a system to accommodate increased demand. To maximize asset availability, you must ensure that your systems are scalable.

  • Security:
  • Another critical factor is security. This refers to the ability of a system to protect assets from unauthorized access. To maximize asset availability, you must ensure that your systems are secure.

    What Are Some Benefits Of Having A Good Asset Availability Calculation?

    There are many benefits to having a reasonable asset availability calculation:

  • It can help you to manage your inventory better and avoid stockouts.
  • It can help you to identify and correct any problems with your manufacturing or assembly process.
  • Also, it can improve customer service by providing accurate information about when products will be available.
  • Optimizing your production process can help you reduce overall costs.
  • How Does Asset Availability Impact An Organization?

    Asset availability impacts an organization by determining how much capital is available to invest in new projects or initiatives.

    Inventory management is a critical component of any organization, whether a manufacturing company, a retail store or a service organization. Inventory management aims to ensure that the proper inventory is in the right place at the right time and available when needed.

    Asset availability measures how well an organization can meet customer demand for its products or services. Also, it is a key performance indicator (KPI) for manufacturing. And also, service organizations and is used to assess the effectiveness of inventory management.

    Asset availability is impacted by several factors, including:

  • The accuracy of inventory records: Inaccurate inventory records can lead to stockouts or excess inventory.
  • The lead time for replenishing inventory: Long lead times can impact asset availability if demand exceeds supply.
  • The inventory level: Too much inventory can tie up working capital, while too little inventory can lead to stockouts.
  • The types of inventory: Some items are more challenging to acquire than others, which can impact asset availability.
  • The location of inventory: Inventory that could be more conveniently located can impact asset availability.
  • The condition of inventory: Damaged or obsolete inventory can impact asset availability.
  • Inventory security: Inventory not properly secured can be lost or stolen, impacting asset availability.
  • The mode of transportation: The method of transportation can impact asset availability if it is unreliable or takes too long.
  • FAQ

    Why Is Asset Availability Important?

    Asset availability is crucial because it ensures that an organization's assets are available when needed. This can help to avoid disruptions in operations. And also, can help to ensure that an organization's assets are used efficiently.

    What Are The Consequences Of Poor Asset Availability?

    There are a few consequences of poor asset availability. One is that it can lead to disruptions in the supply chain, as assets may need to be where they are supposed to be when required. This can cause delays and other problems.

    Conclusion

    The asset availability calculation is a tool that can be used to determine the amount of time that an asset is available for use. However, this information can be used to help make decisions about how to best use the support. And can also help to identify potential problems that may impact the asset's availability.

    If you have questions about the asset availability calculation, feel free to ask in the comments below.

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